Practice question
Two insurers cover the same person's same property interest against the same risk, but their total coverage does not exceed the applicable insurable value. Which classification is sound?
- No double insurance can exist unless coverage is excessive.
- The policies automatically become life insurance.
- The insured becomes a reinsurer.
- Double insurance exists on the stipulated identities, without overinsurance on these amounts.
- Every claim must be paid twice without limit.
Legal references
- Insurance Code as amended by RA10607, Sections26–48 and95–100: https://lawphil.net/statutes/repacts/ra2013/ra_10607_2013.html
- Malayan Insurance v. Philippines First Insurance, GR184300, July11 2012, main decision: https://lawphil.net/judjuris/juri2012/jul2012/gr_184300_2012.html
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